Evolving International Standards & New Regulatory Structure

The Bahamas supports the view that OFCs must meet the new – and evolving – international standards for the delivery of international financial services. The significant impact of international services financial services, the second largest contributor on the economy, made it imperative to establish a regulatory regime that conforms to the highest international standards and best practices. According to the Finance Minister, the Government strived to combine sufficient regulatory oversight to ensure the industry’s integrity with sufficient operational freedoms to ensure its responsiveness and viability.

Specifically:

1. The Central Bank of The Bahamas Act 2000 and the Banks and Trust Companies Regulation Act 2000 provide for:

-improved supervision

-on-site inspection of banks and trust companies

-full cooperation on cross-border supervision of banks and trust companies

-enhanced cooperation between the Central Bank and overseas regulatory authorities

-extensive information gathering powers for the Central Bank.

-enhanced supervisory powers for the Inspector of Banks and Trust Companies

-enhanced role of the Central Bank Governor

-expansion of the licensing criteria for banks and trust companies

Regulatory Agency/Regulators:

-Central Bank of the Bahamas
-Governor of the Central Bank of The Bahamas
-Inspector of Banks and Trust Companies

2. The Financial & Corporate Service Providers Act provides for:

-annual licensing of persons to carry on the business of financial and corporate services in or from within The Bahamas

Regulator:

-Inspector of Finance and Corporate Managers

3. The Financial Intelligence Unit Act 2000 provides for the establishment of a financial intelligence unit in The Bahamas, charged with:

-receiving, analysing, obtaining, and disseminating information relating to the proceeds of an offence under the Proceeds of Crime Act 2000

-informing the public, financial and business entities of their obligations under counter-money laundering measures

Regulator:

-Financial Intelligence Unit

4. The Financial Transactions Reporting Act provides for

-the identification of those who abuse the financial systems

-imposition of certain obligations on financial institutions in relation to the conduct of financial transactions and for connected purposes